IC 20-26-11Chapter 11. Legal Settlement and Transfer of Students;

Transfer Tuition

IC 20-26-11-0.2Application of certain amendments to prior law

Sec. 0.2. The amendments made to IC 20-8.1-6.1-9 (before itsrepeal, now codified at section 14 of this chapter) by P.L.260-1997apply only to school years beginning after June 30, 1996.As added by P.L.220-2011, SEC.330.

IC 20-26-11-1"Residence", "resides", and comparable terms

Sec. 1. As used in this chapter with respect to legal settlement,transfers, and the payment of tuition, the words "residence","resides", or other comparable language means a permanent andprincipal habitation that an individual uses for a home for a fixed orindefinite period, at which the individual remains when not calledelsewhere for work, studies, recreation, or other temporary or specialpurpose. These terms are not synonymous with legal domicile.Except as provided in section 2(3) of this chapter, where a courtorder grants an individual custody of a student, the residence of thestudent is where that individual resides.As added by P.L.1-2005, SEC.10. Amended by P.L.13-2006, SEC.1.

IC 20-26-11-2Legal settlement

Sec. 2. The legal settlement of a student is governed by thefollowing provisions:

(1) If the student:(A) is less than eighteen (18) years of age; or(B) is at least eighteen (18) years of age but is notemancipated;

the legal settlement of the student is in the attendance area ofthe school corporation where the student's parents reside.(2) If the student's mother and father, in a situation to whichsubdivision (1) otherwise applies, are divorced or separated, thelegal settlement of the student is the school corporation whoseattendance area contains the residence of the parent with whomthe student is living, in the following situations:

(A) If a court order has not been made establishing thecustody of the student.(B) Except as provided in subdivision (3), if both parentshave agreed on the parent or person with whom the studentwill live.(C) If the parent granted custody of the student hasabandoned the student.

In the event of a dispute between the parents of the student, or

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between the parents and a student at least eighteen (18) years ofage, the legal settlement of the student shall be determined asotherwise provided in this section.(3) If, in a situation in which subdivision (1) otherwise applies,the student's mother and father are divorced or separated, andif a court order grants the student's:

(A) mother;(B) father; or(C) both mother and father;

custody of the student, the legal settlement of the student is theschool corporation whose attendance area contains theresidence of the mother or father, as elected under section 2.5(a)of this chapter. If the custodial parent (or the student, if at leasteighteen (18) years of age) does not make an election undersection 2.5(a) of this chapter, the legal settlement of the studentis the school corporation whose attendance area contains theresidence of the parent granted physical custody by the courtorder.(4) If the legal settlement of a student, in a situation to whichsubdivision (1) otherwise applies, cannot reasonably bedetermined and the student is being supported by, cared for by,and living with some other individual, the legal settlement ofthe student is in the attendance area of that individual'sresidence, except where the parents of the student are able tosupport the student but have placed the student in the home ofanother individual, or allowed the student to live with anotherindividual, primarily for the purpose of attending school in theattendance area where the other individual resides. The schoolmay, if the facts are in dispute, condition acceptance of thestudent's legal settlement on the appointment of that individualas legal guardian or custodian of the student, and the date oflegal settlement will be fixed to coincide with thecommencement of the proceedings for the appointment of aguardian or custodian. However, if a student does not residewith the student's parents because the student's parents areunable to support the child and the child is not residing with anindividual other than a parent primarily to attend a particularschool, the student's legal settlement is where the studentresides, and the establishment of a legal guardianship may notbe required by the school. In addition, a legal guardianship orcustodianship established solely to attend school in a particularschool corporation does not affect the determination of the legalsettlement of the student under this chapter.(5) If a student, to whom subdivision (1) would otherwiseapply, is married and living with a spouse, the legal settlementof that student is in the attendance area of the schoolcorporation where the student and the student's spouse reside.(6) If the student's parents:

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(A) are living outside the United States due to educationalpursuits or a job assignment;(B) do not maintain a permanent home in any schoolcorporation in the United States; and(C) have placed the student in the home of anotherindividual;

the legal settlement of the student is in the attendance areawhere the other individual resides.(7) If the student is emancipated, the legal settlement is theattendance area of the school corporation of the student'sresidence.(8) If a student's legal settlement is changed after the studenthas begun attending school in a school corporation in anyschool year, the effective date of change may:

(A) at the election of:(i) the parent;(ii) the student, if the student is at least eighteen (18) yearsof age; or(iii) a juvenile court conducting a proceeding underIC 31-34-20-5, IC 31-34-21-10, IC 31-37-19-26, orIC 31-37-20-6 (or IC 31-6-4-18.5 before its repeal);

be extended until the end of that semester; or(B) at the discretion of the school, until the end of thatschool year.

However, that election, where a student has completed grade 11in any school year, shall extend to the end of the followingschool year in grade 12.(9) If a juvenile court has:

(A) made findings of fact concerning the legal settlement ofa student under IC 31-34-20-5, IC 31-34-21-10,IC 31-37-19-26, or IC 31-37-20-6 (or IC 31-6-4-18.5 beforeits repeal); and(B) jurisdiction over the student under IC 31-34 or IC 31-37;

the legal settlement of the student is the attendance areaspecified as the legal settlement in the latest findings of factissued by the juvenile court.

As added by P.L.1-2005, SEC.10. Amended by P.L.13-2006, SEC.2.

IC 20-26-11-2.5Election to have legal settlement

Sec. 2.5. (a) In the case of a student described in section 2(3) ofthis chapter, the:

(1) parent granted physical custody by a court; or(2) student, if the student is at least eighteen (18) years of age;

may elect for the student to have legal settlement in the schoolcorporation whose attendance area contains the residence of thestudent's mother or the school corporation whose attendance areacontains the residence of the student's father.

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(b) An election under subsection (a) shall be made on a yearlybasis and applies throughout the school year unless the student'sparent no longer resides within the attendance area of the schoolcorporation.

(c) The parent or student who makes an election under subsection(a) is not required to pay transfer tuition.As added by P.L.13-2006, SEC.3. Amended by P.L.141-2006,SEC.93; P.L.219-2015, SEC.2.

IC 20-26-11-3Forms concerning legal settlement

Sec. 3. The state superintendent shall prepare the form ofagreement to be used under section 2(2) of this chapter and a form tobe executed by any individual with whom the student is living undersection 2(2), 2(3), 2(4), or 2(6) of this chapter. The execution of theform by the individual and its continuance in force is a condition tothe application of section 2(2), 2(3), 2(4), or 2(6) of this chapter. Theform must contain an agreement of the individual that the individualshall, with respect to dealing with the school corporation and for allother purposes under this article, assume all the duties and be subjectto all the liabilities of a parent of the student in the same manner asif the individual were the student's parent. On the execution of thatform and for as long as it remains in force, the individual has theseduties and liabilities.As added by P.L.1-2005, SEC.10. Amended by P.L.13-2006, SEC.4.

IC 20-26-11-4Appeal from determination of legal settlement

Sec. 4. A student is emancipated when the student:(1) furnishes the student's support from the student's ownresources;(2) is not dependent in any material way on the student's parentsfor support;(3) files or is required by applicable law to file a separate taxreturn; and(4) maintains a residence separate from that of the student'sparents.

As added by P.L.1-2005, SEC.10.

IC 20-26-11-5Transfer at request of parent or student; approval; appeal

Sec. 5. (a) The parents of any student, regardless of the student'sage, or the student after the student has become eighteen (18) yearsof age may request a transfer from a school corporation in which thestudent has a legal settlement to a transferee school corporation inIndiana or another state if the student may be better accommodatedin the public schools of the transferee corporation. Whether thestudent can be better accommodated depends on such matters as:

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(1) crowded conditions of the transferee or transferorcorporation; and(2) curriculum offerings at the high school level that areimportant to the vocational or academic aspirations of thestudent.

(b) The request for transfer must be made in writing to thetransferor corporation, which shall immediately mail a copy to thetransferee corporation. The request for transfer must be made at thetimes provided under rules adopted by the state board. The transferis effected if both the transferee and the transferor corporationsapprove the transfer not more than thirty (30) days after that mailing.If the transferor school corporation fails to act on the transfer requestwithin thirty (30) days after the request is received, the transfer isconsidered approved. The transfer is denied when either schoolcorporation: mails a written denial by certified mail to the requestingparents or student at their last known address.

(c) If a request for transfer is denied under subsection (b), anappeal may be taken to the state board by the requesting parents orstudent, if commenced not more than ten (10) days after the denial.An appeal is commenced by mailing a notice of appeal by certifiedmail to the superintendent of each school corporation and the stateboard. The state superintendent shall develop forms for this purpose,and the transferor corporation shall assist the parents or student inthe mechanics of commencing the appeal. An appeal hearing mustcomply with section 15 of this chapter.As added by P.L.1-2005, SEC.10. Amended by P.L.89-2005, SEC.3.

IC 20-26-11-6Transfer tuition

Sec. 6. (a) A school corporation may accept a transferring studentwithout approval of the transferor corporation under section 5 of thischapter.

(b) A transfer may be accepted regardless of whether, as acondition of the transfer, the transferee school requires the requestingparents or student to pay transfer tuition in an amount determinedunder the formula established in section 13 of this chapter for thepayment of transfer tuition by a transferor school corporation.However, if the transferee school elects to charge transfer tuition, thetransferee school may not offset the amounts described in section13(b) STEP TWO (B) through section 13(b) STEP TWO (D) of thischapter from the amount charged to the requesting parents or student.

(c) When the transferee school elects to charge tuition to therequesting parents or student, the tuition determined undersubsection (b) must be paid by the parents or the student before theend of the school year in installments as determined by the transfereecorporation.

(d) Failure to pay a tuition installment that is agreed to by theparents or student and the transferee school corporation is a ground

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for exclusion from school.(e) If the transferee school elects not to charge transfer tuition to

the parents or student under this section, the transferee school maynot charge transfer tuition or fees to the transferor school.As added by P.L.1-2005, SEC.10. Amended by P.L.30-2010, SEC.1.

IC 20-26-11-6.5Transfers of children of school corporation employees

Sec. 6.5. (a) Notwithstanding this chapter, a school corporationshall accept a transferring student who does not have legal settlementin the school corporation and who has a parent who is a currentemployee of the transferee school corporation who resides in Indianaif the transferee school corporation has the capacity to accept thestudent.

(b) If the number of students who request to transfer to atransferee school corporation under this section causes the schoolcorporation to exceed the school corporation's maximum studentcapacity, the governing body shall determine which students will beadmitted as transfer students by a random drawing in a publicmeeting.As added by P.L.17-2015, SEC.1.

IC 20-26-11-6.7Transfer agreements; school corporation and nonpublic school

Sec. 6.7. (a) This section:(1) applies to a school corporation that does not have a policyof accepting transfer students having legal settlement outsidethe attendance area of the transferee school corporation; and(2) does not apply to a school corporation that has more thanone (1) high school.

(b) Notwithstanding this chapter, a school corporation shall accepta transferring student who resides in Indiana and who does not havelegal settlement in the school corporation if:

(1) the student attended an accredited nonpublic elementaryschool located in the attendance area of the transferee schoolcorporation for at least two (2) school years immediatelypreceding the school year in which the student transfers to ahigh school in the transferee school corporation under thissection;(2) the student is transferring because the accredited nonpublicschool from which the student is transferring does not offergrades 9 through 12;(3) the majority of the students in the same grade as thetransferring student at the accredited nonpublic school havelegal settlement in the transferee school corporation and willattend a school under the authority of the transferee schoolcorporation; and(4) the transferee school corporation has the capacity to accept

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students.(c) If the number of students who request to transfer to a

transferee school corporation under this section causes the schoolcorporation to exceed the school corporation's maximum studentcapacity, the governing body shall determine which students will beadmitted as transfer students by a random drawing in a publicmeeting.As added by P.L.17-2015, SEC.2.

IC 20-26-11-7Transfers; students with disabilities

Sec. 7. (a) A school corporation may transfer a student with aphysical, emotional, or mental disability to a transferee corporationthat maintains special programs or facilities for children with thedisability of the transferred student.

(b) A transferee corporation may refuse the transfer undersubsection (a) by mailing a notice by certified mail to:

(1) the transferor corporation;(2) the parents of the student; and(3) the state board.

(c) If a transferee corporation refuses transfer under subsection(b), the state board shall determine the question of granting a transferunder the procedures set out in section 15 of this chapter.As added by P.L.1-2005, SEC.10.

IC 20-26-11-8Payment of transfer tuition for students in public and privateinstitutions or in foster homes

Sec. 8. (a) A student who is placed in a state licensed private orpublic health care facility or child care facility:

(1) by or with the consent of the department of child services;(2) by a court order; or(3) by a child placing agency licensed by the department ofchild services;

may attend school in the school corporation in which the facility islocated. If the school corporation in which the facility is located isnot the school corporation in which the student has legal settlement,the school corporation in which the student has legal settlement shallpay the transfer tuition of the student.

(b) A student who is placed in a state licensed private or publichealth care or child care facility by a parent may attend school in theschool corporation in which the facility is located if:

(1) the placement is necessary for the student's physical oremotional health and well-being and, if the placement is in ahealth care facility, is recommended by a physician; and(2) the placement is projected to be for not less than fourteen(14) consecutive calendar days or a total of twenty (20)calendar days.

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The school corporation in which the student has legal settlementshall pay the transfer tuition of the student. The parent of the studentshall notify the school corporation in which the facility is located andthe school corporation of the student's legal settlement, ifidentifiable, of the placement. Not later than thirty (30) days afterthis notice, the school corporation of legal settlement shall either paythe transfer tuition of the transferred student or appeal the paymentby notice to the department. The acceptance or notice of appeal bythe school corporation must be given by certified mail to the parentor guardian of the student and any affected school corporation. In thecase of a student who is not identified as having a disability underIC 20-35, the state board shall make a determination on transfertuition according to the procedures in section 15 of this chapter. Inthe case of a student who has been identified as having a disabilityunder IC 20-35, the determination on transfer tuition shall be madeunder this subsection and the procedures adopted by the state boardunder IC 20-35-2-1(b)(5).

(c) A student who is placed in:(1) an institution operated by the division of disability andrehabilitative services or the division of mental health andaddiction; or(2) an institution, a public or private facility, a home, a grouphome, or an alternative family setting by the division ofdisability and rehabilitative services or the division of mentalhealth and addiction;

may attend school in the school corporation in which the institutionis located. The state shall pay the transfer tuition of the student,unless another entity is required to pay the transfer tuition as a resultof a placement described in subsection (a) or (b) or another state isobligated to pay the transfer tuition.

(d) This subsection applies to a student who is placed:(1) by or with the consent of the department of child services;(2) by a court order; or(3) by a child placing agency licensed by the department ofchild services;

in a foster family home or the home of a relative or other unlicensedcaretaker that is not located in the school corporation in which thestudent has legal settlement. The student may attend school in eitherthe school corporation in which the foster family home or other homeis located or the school corporation in which the student has legalsettlement. The department of child services and the student's fosterparents or caretaker shall make the determination concerning wherethe student attends school unless that determination is made by acourt that has jurisdiction over the student. If a licensed child placingagency is responsible for oversight of the foster family home inwhich the student is placed or for providing services to the student,the department of child services must consult with the licensed childplacing agency concerning the determination of, or the

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recommendations made to the court concerning, where the studentattends school. Except as provided in subsection (e), transfer tuitionis not required for the student.

(e) If a student to whom subsection (d) applies is attending schoolin a school corporation that is not the school corporation in which thestudent has legal settlement, the school corporation in which thestudent has legal settlement shall pay transfer tuition to the schoolcorporation in which the student is enrolled in school if all of thefollowing conditions apply:

(1) The student was previously placed in a child caringinstitution licensed under IC 31-27-3.(2) While placed in the child caring institution, the student wasenrolled in a school that is:

(A) administered by the school corporation in which thechild caring institution is located; and(B) located at the child caring institution.

(3) The student was moved from the child caring institution toa licensed foster family home supervised by the child caringinstitution either:

(A) with the approval of the department of child services andthe court having jurisdiction over the student in a case underIC 31-34; or(B) by a court order in a case under IC 31-37.

(4) After moving from the child caring institution to the fosterfamily home, the student continues to attend the school locatedat the child caring institution.(5) The legal settlement of the student was determined by ajuvenile court under IC 31-34-20-5, IC 31-34-21-10,IC 31-37-19-26, or IC 31-37-20-6.

(f) A student:(1) who is placed in a facility, home, or institution described insubsection (a), (b), or (c);(2) to whom neither subsection (d) nor (e) applies; and(3) for whom there is no other entity or person required to paytransfer tuition;

may attend school in the school corporation in which the facility,home, or institution is located. The department shall conduct aninvestigation and determine whether any other entity or person isrequired to pay transfer tuition. If the department determines that noother entity or person is required to pay transfer tuition, the stateshall pay the transfer tuition for the student out of the fundsappropriated for tuition support.As added by P.L.1-2005, SEC.10. Amended by P.L.89-2005, SEC.4;P.L.231-2005, SEC.33; P.L.1-2006, SEC.331; P.L.141-2006,SEC.94; P.L.145-2006, SEC.148; P.L.99-2007, SEC.168;P.L.159-2007, SEC.1; P.L.65-2012, SEC.2; P.L.160-2012, SEC.48.

IC 20-26-11-8.5

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No effect of P.L.36-1994 on rights, liabilities, penalties, crimes,proceedings before July 1, 1995, relating to paying transfer tuition

Sec. 8.5. With regard to the transfer of responsibility for payingtransfer tuition for certain students from the county to the schoolcorporation of the student's legal settlement as described inIC 20-8.1-6.1-5 (as amended by P.L.36-1994, before its repeal, nowcodified at section 8 of this chapter), P.L.36-1994 does not affect:

(1) rights or liabilities accrued;(2) penalties incurred;(3) crimes committed; or(4) proceedings begun;

before July 1, 1995. Those rights, liabilities, penalties, crimes, andproceedings continue and shall be imposed and enforced under priorlaw as if P.L.36-1994 had not been enacted.As added by P.L.220-2011, SEC.331.

IC 20-26-11-9Notice of legal settlement and placement

Sec. 9. (a) This section applies to each student:(1) described in section 8(a) of this chapter;(2) who is placed in a home or facility in Indiana that is outsidethe school corporation where the student has legal settlement;and(3) for which the state is not obligated to pay transfer tuition.

(b) Not later than ten (10) days after the department of childservices or a probation department places or changes the placementof a student, the department of child services or probationdepartment that placed the student shall notify the school corporationwhere the student has legal settlement and the school corporationwhere the student will attend school of the placement or change ofplacement. Before September 1 of each year, the department of childservices or a probation department that places a student in a home orfacility shall notify the school corporation where a student has legalsettlement and the school corporation in which a student will attendschool if a student's placement will continue for the ensuing schoolyear. The notifications required under this subsection must be madeby:

(1) the department of child services, if the child is a child inneed of services; or(2) if subdivision (1) does not apply, the court or other agencymaking the placement.

As added by P.L.1-2005, SEC.10. Amended by P.L.145-2006,SEC.149; P.L.146-2008, SEC.469; P.L.131-2009, SEC.3;P.L.46-2016, SEC.1.

IC 20-26-11-10Tuition for children of certain state employees and foreignexchange students

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Sec. 10. (a) A student who is the child of a state employee whoresides on state owned property, resides on state owned property, oris the child of a full-time employee of a state educational institution,who resides on property owned or operated by the state educationalinstitution and used for educational, research, or public serviceprograms is considered a transferred student if:

(1) the student attends a public school in the school corporationlocated nearest to the student's residence within the county inwhich all or a part of either the state owned property, or theproperty owned or operated by the state supportedpostsecondary institution, is located; or(2) the state owned property is the Soldiers' and Sailors'Children's Home and the student attends a public school in thecounty in which the home is located or in an adjacent county.

Transfer tuition for a student transferred under this subsection shallbe paid by the state. However, this subsection does not apply tochildren of state employees residing in student housing on propertyowned by any state educational institution.

(b) A foreign student visiting in Indiana under any studentexchange program approved by the state board is considered aresident student with legal settlement in the school corporation wherethe foreign exchange student resides. The student may attend aschool in the school corporation in which the family with whom thestudent is living resides. A school corporation that receives a foreignstudent may not be paid any transfer tuition. The school corporationshall include the foreign student in computations to determine theamount of state aid that it is entitled to receive.As added by P.L.1-2005, SEC.10. Amended by P.L.2-2007, SEC.212.

IC 20-26-11-11Tuition for suspended, expelled, or excluded emotionally disturbedstudents

Sec. 11. (a) A school corporation may enter into an agreementwith:

(1) a nonprofit corporation that operates a federally approvededucation program; or(2) a nonprofit corporation that:

(A) is exempt from federal income taxation under Section501(c)(3) of the Internal Revenue Code;(B) for its classroom instruction, employs teachers who arecertified by the department;(C) employs other professionally and state licensed staff asappropriate; and(D) educates children who:

(i) have been suspended, expelled, or excluded from apublic school in that school corporation and have beenfound to have an emotional disturbance;(ii) have been placed with the nonprofit corporation by

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court order;(iii) have been referred by a local health department;(iv) have been placed in a state licensed private or publichealth care or child care facility as described in section 8of this chapter; or(v) have been placed by or with the consent of thedepartment under IC 20-35-6-2;

in order to provide a student with an individualized educationprogram that is the most suitable educational program available.

(b) If a school corporation that is a transferee corporation entersinto an agreement as described in subsection (a), the schoolcorporation shall pay to the nonprofit corporation an amount agreedupon that may not exceed the total of:

(1) the transfer tuition costs for the student that otherwisewould be payable to the transferee corporation; and(2) a proportionate amount of any state or local distributions tothe transferee corporation that are computed in any part usingcurrent ADM or any other student count in which the student isincluded, if the transferee corporation includes the student inthe transferee corporation's current ADM for the period inwhich the student is being educated by the nonprofitcorporation.

(c) If a school corporation that is a transferor corporation entersinto an agreement as described in subsection (a), the schoolcorporation shall pay to the nonprofit corporation an amount agreedupon, which may not exceed the total of:

(1) the transfer tuition costs that otherwise would be payable toa transferee school corporation; and(2) a proportionate amount of any state or local distributions tothe transferor corporation that are computed in any part usingcurrent ADM or any other student count in which the student isincluded, if the transferor corporation includes the student inthe transferor corporation's ADM for the period in which thestudent is being educated by the nonprofit corporation.

As added by P.L.1-2005, SEC.10. Amended by P.L.246-2005,SEC.131; P.L.99-2007, SEC.169; P.L.159-2007, SEC.2;P.L.205-2013, SEC.241.

IC 20-26-11-11.5Payments by school corporations to certain facilities providingeducation services to students

Sec. 11.5. (a) The following definitions apply to this section:(1) "ADM" means average daily membership (as defined inIC 20-18-2-2).(2) "Facility" means a secure private facility described inIC 31-9-2-115(a)(1).(3) "School corporation" means the Indiana school or charterschool that is receiving state tuition support for the student at

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the time of the student's admission to the facility.(4) "Student" means an individual who:

(A) is more than five (5) years of age and less thantwenty-three (23) years of age;(B) has been admitted to a facility; and(C) was enrolled in a school corporation during the schoolyear immediately preceding the student's admission to thefacility.

(b) This section applies to a student if:(1) the student is placed in a facility under the written order ofa physician licensed under IC 25-22.5;(2) the written order of the physician licensed under IC 25-22.5is based on medical necessity, as determined by a physicianlicensed under IC 25-22.5; and(3) the student receives educational services provided by thefacility.

(c) A facility shall provide written notice to the school corporationnot later than five (5) business days (excluding weekends andholidays) after a student described in subsection (b) is admitted to thefacility. The written notice must include the following:

(1) The student's name, address, and date of birth.(2) The date on which the student was admitted to the facility.(3) A copy of the physician's written order.(4) A statement that the student has opted out of attendingschool under IC 20-26-11-8.(5) A statement that the facility will provide all educationalservices to the student during the student's admission in thefacility.

(d) The school corporation shall pay the facility a daily per diemas determined under subsection (e) for the educational servicesprovided by the facility to the student during the student's admissionin the facility. The school corporation may not be required to pay forany educational services provided to the student by the facilityexceeding one hundred eighty (180) instructional days or an amountexceeding the student's proportionate share of state distributions paidto the school corporation, as determined under subsection (e).

(e) A school corporation shall pay to the facility an amount,prorated according to the number of instructional days for which thestudent receives the educational services, equal to:

(1) the student's proportionate share (as compared to the schoolcorporation's total ADM) of basic tuition support (asdetermined under IC 20-43-6-3(b)) distributions that are madeto the school corporation for the school year; and(2) any special education grants received by the schoolcorporation for the student under IC 20-43-7.

Upon request of a facility, the department shall verify the amountsdescribed in this subsection for a student admitted to the facility.

(f) A school corporation responsible for making a per diem

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payment under this section shall pay the facility not later than sixty(60) days after receiving an invoice from the facility. The schoolcorporation and the facility are entitled to the same remedies fordisagreements over amounts or nonpayment of an amount due as areprovided under the laws governing transfer tuition.

(g) For each student admitted to a facility, the facility shallprovide the following in accordance with rules adopted by the stateboard:

(1) An educational opportunity, including special education andrelated services, that is comparable to that of a student attendinga school in the school corporation.(2) A level of educational services from the facility that iscomparable to that of a student attending a school in the schoolcorporation.(3) Unless otherwise provided in a student's individualizededucation program (as defined in IC 20-18-2-9), educationalservices that include at least the following:

(A) An instructional day that meets the requirements ofIC 20-30-2-2.(B) A school year with at least one hundred eighty (180)student instructional days as provided under IC 20-30-2-3.(C) Educationally appropriate textbooks and other materials.(D) Educational services provided by licensed teachers.

(h) The state board shall adopt a rule that addresses theresponsibilities of the school corporation and the facility with regardto a student with an individualized education program.

(i) This section does not limit a student's right to attend a schoolas provided in IC 20-26-11-8.

(j) The state board shall adopt rules under IC 4-22-2 as necessaryto implement this section.

(k) The state board may adopt emergency rules in the mannerprovided in IC 4-22-2-37.1 to implement this section.As added by P.L.129-2013, SEC.1.

IC 20-26-11-12Interstate transfers

Sec. 12. (a) If a student is transferred under section 5 of thischapter from a school corporation in Indiana to a public schoolcorporation in another state, the transferor corporation shall pay thetransferee corporation the full tuition fee charged by the transfereecorporation. However, the amount of the full tuition fee may notexceed the amount charged by the transferor corporation for the sameclass of school, or if the school does not have the same classification,the amount may not exceed the amount charged by thegeographically nearest school corporation in Indiana that has thesame classification.

(b) If a child is:(1) placed by or with the consent of the department of child

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services in an out-of-state institution or other facility; and(2) provided all educational programs and services by a publicschool corporation in the state where the child is placed,whether at the facility, the public school, or another location;

the department of child services shall pay to the public schoolcorporation in which the child is enrolled, the amount of transfertuition specified in subsection (c).

(c) The transfer tuition for which the department of child servicesis obligated under subsection (b) is equal to the following:

(1) The amount under a written agreement among thedepartment of child services, the institution or other facility,and the governing body of the public school corporation in theother state that specifies the amount and method of computingtransfer tuition.(2) The full tuition fee charged by the transferee corporation, ifsubdivision (1) does not apply. However, the amount of the fulltuition fee must not exceed the amount charged by thetransferor corporation for the same class of school, or if theschool does not have the same classification, the amount mustnot exceed the amount charged by the geographically nearestschool corporation in Indiana that has the same classification.

(d) If a child is:(1) placed by or with the consent of the department of childservices in an out-of-state institution or other facility; and(2) provided:

(A) onsite educational programs and services either throughthe facility's employees or by contract with another personor organization that is not a public school corporation; or(B) educational programs and services by a nonpublicschool;

the department of child services shall pay in an amount and in themanner specified in a written agreement between the department ofchild services and the institution or other facility.

(e) For purposes of IC 4-13-2, an agreement described insubsection (c) or (d) shall not be treated as a contract.As added by P.L.1-2005, SEC.10. Amended by P.L.145-2006,SEC.150; P.L.146-2008, SEC.470.

IC 20-26-11-13 Version aDetermination of transfer tuition

Note: This version of section effective until 1-1-2017. See alsofollowing version of this section, effective 1-1-2017.

Sec. 13. (a) As used in this section, the following terms have thefollowing meanings:

(1) "Class of school" refers to a classification of each school orprogram in the transferee corporation by the grades or specialprograms taught at the school. Generally, these classificationsare denominated as kindergarten, elementary school, middle

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school or junior high school, high school, and special schoolsor classes, such as schools or classes for special education,career and technical education, or career education.(2) "Special equipment" means equipment that during a schoolyear:

(A) is used only when a child with disabilities is attendingschool;(B) is not used to transport a child to or from a place wherethe child is attending school;(C) is necessary for the education of each child withdisabilities that uses the equipment, as determined under theindividualized education program for the child; and(D) is not used for or by any child who is not a child withdisabilities.

(3) "Student enrollment" means the following:(A) The total number of students in kindergarten throughgrade 12 who are enrolled in a transferee school corporationon a date determined by the state board.(B) The total number of students enrolled in a class ofschool in a transferee school corporation on a datedetermined by the state board.

However, a kindergarten student shall be counted under clauses(A) and (B) as one-half (1/2) student. The state board mayselect a different date for counts under this subdivision.However, the same date shall be used for all schoolcorporations making a count for the same class of school.

(b) Each transferee corporation is entitled to receive for eachschool year on account of each transferred student, except a studenttransferred under section 6 of this chapter, transfer tuition from thetransferor corporation or the state as provided in this chapter.Transfer tuition equals the amount determined under STEP THREEof the following formula:

STEP ONE: Allocate to each transfer student the capitalexpenditures for any special equipment used by the transferstudent and a proportionate share of the operating costs incurredby the transferee school for the class of school where thetransfer student is enrolled.STEP TWO: If the transferee school included the transferstudent in the transferee school's current ADM, allocate to thetransfer student a proportionate share of the following generalfund revenues of the transferee school:

(A) State tuition support distributions received during thecalendar year in which the school year ends.(B) Property tax levies under IC 20-45-7 and IC 20-45-8 forthe calendar year in which the school year ends.(C) The sum of the following excise tax revenue received fordeposit in the calendar year in which the school year begins:

(i) Financial institution excise tax revenue (IC 6-5.5).

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(ii) Motor vehicle excise taxes (IC 6-6-5).(iii) Commercial vehicle excise taxes (IC 6-6-5.5).(iv) Boat excise tax (IC 6-6-11).(v) Aircraft license excise tax (IC 6-6-6.5).

(D) Allocations to the transferee school under IC 6-3.5.STEP THREE: Determine the greater of:

(A) zero (0); or(B) the result of subtracting the STEP TWO amount fromthe STEP ONE amount.

If a child is placed in an institution or facility in Indiana by or withthe approval of the department of child services, the institution orfacility shall charge the department of child services for the use ofthe space within the institution or facility (commonly called capitalcosts) that is used to provide educational services to the child basedupon a prorated per student cost.

(c) Operating costs shall be determined for each class of schoolwhere a transfer student is enrolled. The operating cost for each classof school is based on the total expenditures of the transfereecorporation for the class of school from its general fund expendituresas specified in the classified budget forms prescribed by the stateboard of accounts. This calculation excludes:

(1) capital outlay;(2) debt service;(3) costs of transportation;(4) salaries of board members;(5) contracted service for legal expenses; and(6) any expenditure that is made from extracurricular accountreceipts;

for the school year.(d) The capital cost of special equipment for a school year is equal

to:(1) the cost of the special equipment; divided by(2) the product of:

(A) the useful life of the special equipment, as determinedunder the rules adopted by the state board; multiplied by(B) the number of students using the special equipmentduring at least part of the school year.

(e) When an item of expense or cost described in subsection (c)cannot be allocated to a class of school, it shall be prorated to allclasses of schools on the basis of the student enrollment of each classin the transferee corporation compared with the total studentenrollment in the school corporation.

(f) Operating costs shall be allocated to a transfer student for eachschool year by dividing:

(1) the transferee school corporation's operating costs for theclass of school in which the transfer student is enrolled; by(2) the student enrollment of the class of school in which thetransfer student is enrolled.

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When a transferred student is enrolled in a transferee corporation forless than the full school year of student attendance, the transfertuition shall be calculated by the part of the school year for which thetransferred student is enrolled. A school year of student attendanceconsists of the number of days school is in session for studentattendance. A student, regardless of the student's attendance, isenrolled in a transferee school unless the student is no longer entitledto be transferred because of a change of residence, the student hasbeen excluded or expelled from school for the balance of the schoolyear or for an indefinite period, or the student has been confirmed tohave withdrawn from school. The transferor and the transfereecorporation may enter into written agreements concerning theamount of transfer tuition due in any school year. If an agreementcannot be reached, the amount shall be determined by the state board,and costs may be established, when in dispute, by the state board ofaccounts.

(g) A transferee school shall allocate revenues described insubsection (b) STEP TWO to a transfer student by dividing:

(1) the total amount of revenues received during a period; by(2) the current ADM of the transferee school for the period inwhich the revenues are received.

However, for state tuition support distributions or any other statedistribution computed using less than the total current ADM of thetransferee school, the transferee school shall allocate the revenues tothe transfer student by dividing the revenues that the transfereeschool is eligible to receive during the period by the student countused to compute the state distribution.

(h) Instead of the payments provided in subsection (b), thetransferor corporation or state owing transfer tuition may enter intoa long term contract with the transferee corporation governing thetransfer of students. The contract may:

(1) be entered into for a period of not more than five (5) yearswith an option to renew;(2) specify a maximum number of students to be transferred;and(3) fix a method for determining the amount of transfer tuitionand the time of payment, which may be different from thatprovided in section 14 of this chapter.

(i) A school corporation may negotiate transfer tuition agreementswith a neighboring school corporation that can accommodateadditional students. Agreements under this section may:

(1) be for one (1) year or longer; and(2) fix a method for determining the amount of transfer tuitionor time of payment that is different from the method, amount,or time of payment that is provided in this section or section 14of this chapter.

A school corporation may not transfer a student under this sectionwithout the prior approval of the child's parent.

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As added by P.L.1-2005, SEC.10. Amended by P.L.2-2006, SEC.130;P.L.1-2007, SEC.144; P.L.234-2007, SEC.105; P.L.146-2008,SEC.471; P.L.229-2011, SEC.173; P.L.205-2013, SEC.242.

IC 20-26-11-13 Version bDetermination of transfer tuition

Note: This version of section effective 1-1-2017. See alsopreceding version of this section, effective until 1-1-2017.

Sec. 13. (a) As used in this section, the following terms have thefollowing meanings:

(1) "Class of school" refers to a classification of each school orprogram in the transferee corporation by the grades or specialprograms taught at the school. Generally, these classificationsare denominated as kindergarten, elementary school, middleschool or junior high school, high school, and special schoolsor classes, such as schools or classes for special education,career and technical education, or career education.(2) "Special equipment" means equipment that during a schoolyear:

(A) is used only when a child with disabilities is attendingschool;(B) is not used to transport a child to or from a place wherethe child is attending school;(C) is necessary for the education of each child withdisabilities that uses the equipment, as determined under theindividualized education program for the child; and(D) is not used for or by any child who is not a child withdisabilities.

(3) "Student enrollment" means the following:(A) The total number of students in kindergarten throughgrade 12 who are enrolled in a transferee school corporationon a date determined by the state board.(B) The total number of students enrolled in a class ofschool in a transferee school corporation on a datedetermined by the state board.

However, a kindergarten student shall be counted under clauses(A) and (B) as one-half (1/2) student. The state board mayselect a different date for counts under this subdivision.However, the same date shall be used for all schoolcorporations making a count for the same class of school.

(b) Each transferee corporation is entitled to receive for eachschool year on account of each transferred student, except a studenttransferred under section 6 of this chapter, transfer tuition from thetransferor corporation or the state as provided in this chapter.Transfer tuition equals the amount determined under STEP THREEof the following formula:

STEP ONE: Allocate to each transfer student the capitalexpenditures for any special equipment used by the transfer

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student and a proportionate share of the operating costs incurredby the transferee school for the class of school where thetransfer student is enrolled.STEP TWO: If the transferee school included the transferstudent in the transferee school's current ADM, allocate to thetransfer student a proportionate share of the following generalfund revenues of the transferee school:

(A) State tuition support distributions received during thecalendar year in which the school year ends.(B) Property tax levies under IC 20-45-7 and IC 20-45-8 forthe calendar year in which the school year ends.(C) The sum of the following excise tax revenue received fordeposit in the calendar year in which the school year begins:

(i) Financial institution excise tax revenue (IC 6-5.5).(ii) Motor vehicle excise taxes (IC 6-6-5).(iii) Commercial vehicle excise taxes (IC 6-6-5.5).(iv) Boat excise tax (IC 6-6-11).(v) Aircraft license excise tax (IC 6-6-6.5).

(D) Allocations to the transferee school under IC 6-3.6.STEP THREE: Determine the greater of:

(A) zero (0); or(B) the result of subtracting the STEP TWO amount fromthe STEP ONE amount.

If a child is placed in an institution or facility in Indiana by or withthe approval of the department of child services, the institution orfacility shall charge the department of child services for the use ofthe space within the institution or facility (commonly called capitalcosts) that is used to provide educational services to the child basedupon a prorated per student cost.

(c) Operating costs shall be determined for each class of schoolwhere a transfer student is enrolled. The operating cost for each classof school is based on the total expenditures of the transfereecorporation for the class of school from its general fund expendituresas specified in the classified budget forms prescribed by the stateboard of accounts. This calculation excludes:

(1) capital outlay;(2) debt service;(3) costs of transportation;(4) salaries of board members;(5) contracted service for legal expenses; and(6) any expenditure that is made from extracurricular accountreceipts;

for the school year.(d) The capital cost of special equipment for a school year is equal

to:(1) the cost of the special equipment; divided by(2) the product of:

(A) the useful life of the special equipment, as determined

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under the rules adopted by the state board; multiplied by(B) the number of students using the special equipmentduring at least part of the school year.

(e) When an item of expense or cost described in subsection (c)cannot be allocated to a class of school, it shall be prorated to allclasses of schools on the basis of the student enrollment of each classin the transferee corporation compared with the total studentenrollment in the school corporation.

(f) Operating costs shall be allocated to a transfer student for eachschool year by dividing:

(1) the transferee school corporation's operating costs for theclass of school in which the transfer student is enrolled; by(2) the student enrollment of the class of school in which thetransfer student is enrolled.

When a transferred student is enrolled in a transferee corporation forless than the full school year of student attendance, the transfertuition shall be calculated by the part of the school year for which thetransferred student is enrolled. A school year of student attendanceconsists of the number of days school is in session for studentattendance. A student, regardless of the student's attendance, isenrolled in a transferee school unless the student is no longer entitledto be transferred because of a change of residence, the student hasbeen excluded or expelled from school for the balance of the schoolyear or for an indefinite period, or the student has been confirmed tohave withdrawn from school. The transferor and the transfereecorporation may enter into written agreements concerning theamount of transfer tuition due in any school year. If an agreementcannot be reached, the amount shall be determined by the state board,and costs may be established, when in dispute, by the state board ofaccounts.

(g) A transferee school shall allocate revenues described insubsection (b) STEP TWO to a transfer student by dividing:

(1) the total amount of revenues received during a period; by(2) the current ADM of the transferee school for the period inwhich the revenues are received.

However, for state tuition support distributions or any other statedistribution computed using less than the total current ADM of thetransferee school, the transferee school shall allocate the revenues tothe transfer student by dividing the revenues that the transfereeschool is eligible to receive during the period by the student countused to compute the state distribution.

(h) Instead of the payments provided in subsection (b), thetransferor corporation or state owing transfer tuition may enter intoa long term contract with the transferee corporation governing thetransfer of students. The contract may:

(1) be entered into for a period of not more than five (5) yearswith an option to renew;(2) specify a maximum number of students to be transferred;

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and(3) fix a method for determining the amount of transfer tuitionand the time of payment, which may be different from thatprovided in section 14 of this chapter.

(i) A school corporation may negotiate transfer tuition agreementswith a neighboring school corporation that can accommodateadditional students. Agreements under this section may:

(1) be for one (1) year or longer; and(2) fix a method for determining the amount of transfer tuitionor time of payment that is different from the method, amount,or time of payment that is provided in this section or section 14of this chapter.

A school corporation may not transfer a student under this sectionwithout the prior approval of the child's parent.As added by P.L.1-2005, SEC.10. Amended by P.L.2-2006, SEC.130;P.L.1-2007, SEC.144; P.L.234-2007, SEC.105; P.L.146-2008,SEC.471; P.L.229-2011, SEC.173; P.L.205-2013, SEC.242;P.L.197-2016, SEC.117.

IC 20-26-11-14Estimated transfer tuition payments; statements of amount;method of payment

Sec. 14. (a) Not later than March 1, a school corporation shallestimate the:

(1) transfer tuition payments that the school corporation isrequired to pay for students transferring from the schoolcorporation; and(2) transfer tuition payments that the school corporation isentitled to receive on behalf of students transferring to theschool corporation.

A school corporation shall send a preliminary statement of theamount of transfer tuition due to the state agency and to any schoolcorporation that owes transfer tuition to the school corporation.

(b) Not later than October 1 following the end of a school year, aschool corporation shall send a final statement of the amount oftransfer tuition due to the state agency and to any school corporationthat owes transfer tuition to the school corporation.

(c) A statement sent under subsection (a) or (b) must include thefollowing:

(1) A statement, to the extent known, of all transfer tuition costschargeable to the state or school corporation for the school yearending in the current calendar year.(2) A statement of any transfer tuition costs chargeable to thestate or school corporation and not previously billed for theschool year ending in the immediately preceding calendar year.(3) A statement of any transfer tuition costs previously billed tothe state or school corporation and not yet paid.

(d) Transfer tuition for each school year shall be paid by the

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transferor corporation or state, if the entity is obligated to pay thetuition, in not more than four (4) installments. These installmentsmust be paid not later than October 30, January 10, April 10, andJuly 10 following the school year in which the obligation is incurred,unless another schedule is mutually agreed upon.

(e) Payment of operating costs shall be paid from and receipted tothe respective general funds of the transferor and transfereecorporations. Payment of capital costs shall be made by the transferorcorporation at its discretion from any fund or source and shall bereceipted by the transferee corporation at its discretion either to thecapital projects fund or to the debt service fund, or if the transfereecorporation has neither of these two (2) funds, to its general fund.As added by P.L.1-2005, SEC.10.

IC 20-26-11-15Determination by state board

Sec. 15. (a) The state board shall hear the following:(1) All appeals from an order expelling a child underIC 20-33-8-17.(2) All appeals provided in this chapter.(3) All disputes on the following:

(A) Legal settlement.(B) Right to transfer.(C) Right to attend school in any school corporation.(D) Amount of transfer tuition.(E) Any other matter arising under this chapter.

The board shall hold a hearing on the timely written application ofany interested party.

(b) The state board shall make its determination under thefollowing procedure:

(1) A hearing shall be held on each matter presented.(2) Each interested party, including where appropriate, theparents, the student, the transferor corporation, the transfereecorporation, or the state, shall be given at least ten (10) daysnotice of the hearing by certified mail or by personal delivery.(3) The date of giving the notice is the date of mailing ordelivery.(4) Any interested party may appear at the hearing in person orby counsel, present evidence, cross-examine witnesses, andpresent in writing or orally summary statements of position.(5) A written or recorded transcript of the hearing shall bemade.(6) The hearing may be held by the state board or by a hearingexaminer appointed by it who must be a state employee.(7) The hearing, at the option of the state board or hearingexaminer, may be held at any place in Indiana.(8) The hearing examiner shall make written findings of factand recommendations.

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(9) The determination of the state board must be made on thebasis of the record, summaries, and findings, but it is requiredto examine only those parts of the entire record as it considersnecessary.

(c) The hearing and proceedings are not governed by IC 4-21.5.(d) The determination of the state board is final and binding on

the parties to the proceeding.(e) A notice of the state board's determination shall be mailed to

each party by certified mail. An action to contest the validity of thedecision may not be instituted more than thirty (30) days after themailing of the notice.As added by P.L.1-2005, SEC.10.

IC 20-26-11-16Rules of implementation and enforcement; award to prevailingschool corporation

Sec. 16. (a) The provisions to implement this chapter, including:(1) the calculation of transfer tuition;(2) the credits for state distribution; and(3) the time in the year when requests for transfer must be filed;

shall be implemented by rules adopted by the state board.(b) The state board shall adopt rules for the enforcement of the

payment of transfer tuition. The enforcement may includewithholding state support from the transferor corporation for thebenefit of the transferee corporation, charging interest, penalties forlate payment, and the costs of collection.

(c) If a school corporation prevails at the final adjudication of:(1) an administrative proceeding under this chapter; or(2) a lawsuit against a school corporation;

to compel payment of transfer tuition owed by the school corporationunder this chapter, the administrative body or the court shall awardto the prevailing party the transfer tuition owed, if any, plusreasonable attorney's fees and interest as provided by law.As added by P.L.1-2005, SEC.10.

IC 20-26-11-17Tuition support reporting requirements

Sec. 17. (a) Each year before the date specified in the rulesadopted by the state board, a school corporation shall report theinformation specified in subsection (b) for each student:

(1) for whom tuition support is paid by another schoolcorporation;(2) for whom tuition support is paid by the state; and(3) who is enrolled in the school corporation but has theequivalent of a legal settlement in another state or country;

to the department.(b) Each school corporation shall provide the following

information for each school year for each category of student

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described in subsection (a):(1) The amount of tuition support and other support received forthe students described in subsection (a).(2) The operating expenses, as determined under section 13 ofthis chapter, incurred for the students described in subsection(a).(3) Special equipment expenditures that are directly related toeducating students described in subsection (a).(4) The number of transfer students described in subsection (a).(5) Any other information required under the rules adopted bythe state board after consultation with the office of the secretaryof family and social services.

(c) The information required under this section shall be reportedin the format and on the forms specified by the state board.

(d) Not later than November 30 of each year the department shallcompile the information required from school corporations under thissection and submit the compiled information in the form specified bythe office of the secretary of family and social services to the officeof the secretary of family and social services.

(e) Not later than December 31 of each year, the office of thesecretary of family and social services shall submit a report to themembers of the budget committee and the executive director of thelegislative services agency that compiles and analyzes theinformation required from school corporations under this section.The report must identify the types of state and local funding changesthat are needed to provide adequate state and local money to educatetransfer students. A report submitted under this subsection to theexecutive director of the legislative services agency must be in anelectronic format under IC 5-14-6.As added by P.L.1-2005, SEC.10. Amended by P.L.146-2008,SEC.472.

IC 20-26-11-18Joint liability of health care facility or child care institution fortransfer tuition

Sec. 18. (a) If a student:(1) has legal settlement in the attendance area of a schoolcorporation in another state, when legal settlement isdetermined without regard to the appointment of a guardian inIndiana solely to facilitate the placement of the student in afacility described in subdivision (2);(2) is placed in a state licensed private or public health carefacility, private or public child care institution, or treatmentcenter in Indiana by:

(A) the parent of the student; or(B) a governmental entity in another state; and

(3) is enrolled in a school corporation in Indiana;the state licensed private or public health care facility, private or

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public child care institution, or treatment center where the student isplaced, regardless of when the student is placed, is jointly liable withthe person placing the student for transfer tuition under this chapter.

(b) Notwithstanding subsection (a), a sole proprietorship, apartnership, an association, a corporation, a limited liabilitycompany, a fiduciary, an individual who is not the student's parent,or another entity in Indiana that accepts the placement of a studentwho:

(1) has legal settlement in the attendance area of a schoolcorporation in another state; and(2) is enrolled in a school corporation in Indiana;

is the guarantor for the student's transfer tuition under this chapterunless there is another guarantor. The state board shall hear allappeals under this subsection in accordance with section 15 of thischapter.As added by P.L.1-2005, SEC.10.

IC 20-26-11-19Court ordered transfers; application

Sec. 19. (a) This section through section 29 of this chapterconcern the transfer of students for education from one (1) schoolcorporation (transferor corporation) to another school corporation(transferee corporation) in compliance with a court order asdescribed in this section. This chapter applies solely in a situationwhere a court of the United States or of Indiana in a suit to which thetransferor or transferee corporation or corporations are parties hasfound the following:

(1) A transferor corporation has violated the equal protectionclause of the Fourteenth Amendment to the Constitution of theUnited States by practicing de jure racial segregation of thestudents within its borders.(2) A unitary school system within the meaning of theFourteenth Amendment cannot be implemented within theboundaries of the transferor corporation.(3) The Fourteenth Amendment compels the court to order atransferor corporation to transfer its students for education toone (1) or more transferee corporations to effect a plan ofdesegregation in the transferor corporation that is acceptablewithin the meaning of the Fourteenth Amendment.

(b) This chapter does not apply until all appeals from the order,whether taken by the transferor corporation, any transfereecorporation or any party to the action, have been exhausted or thetime for taking the appeals has expired, except where all stays of atransfer order pending appeal or further court action have beendenied.

(c) This section expires January 1, 2017.As added by P.L.1-2005, SEC.10. Amended by P.L.233-2015,SEC.140.

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IC 20-26-11-20Court ordered transfers; definitions

Sec. 20. (a) As used in sections 19 through 29 of this chapter,"class of school" refers to a classification of each school in thetransferee corporation by the grades taught therein (generallydenominated as elementary schools, middle schools or junior highschools, high schools, and special schools such as schools for specialeducation, career and technical education, or career education).Elementary schools include schools containing kindergarten, but forpurposes of this chapter, a kindergarten student shall be counted asone-half (1/2) student.

(b) As used in sections 19 through 29 of this chapter, "transfereecorporation" means the school corporation receiving students undera court order described in section 19 of this chapter.

(c) As used in sections 19 through 29 of this chapter, "transferorcorporation" means the school corporation transferring studentsunder a court order described in section 19 of this chapter.

(d) As used in sections 19 through 29 of this chapter, "transferredstudent" means any student transferred under a court order describedin section 19 of this chapter.

(e) This section expires January 1, 2017.As added by P.L.1-2005, SEC.10. Amended by P.L.2-2006, SEC.131;P.L.234-2007, SEC.106; P.L.233-2015, SEC.141.

IC 20-26-11-21Court ordered transfers; governing body of transferee corporation

Sec. 21. (a) The governing body of a transferee corporation mayadd two (2) members, one (1) of whom must be a resident of thecontributing geographic area within the transferor corporation fromwhich students are being bused, to the transferee corporation'sgoverning body for each transferor corporation that the transfereecorporation serves. These members are in addition to the number ofmembers of the governing body who are residents of the transfereecorporation.

(b) Each member who is a resident of a contributing transferorcorporation added to the governing body of a transferee corporationby this section:

(1) shall be elected by a majority of all registered and eligiblevoters who vote in each applicable school board election in theschool corporation;(2) must have the same qualifications, other than residency orproperty ownership, that are required for a member of thegoverning body who is a resident of the transferee corporation;and(3) serves for the same number of years as members of thegoverning body who are residents of the transferee corporation.

(c) The members of the governing body of the transfereecorporation shall appoint by majority vote the first additional

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members of a governing body under this section. The membersappointed under this subsection serve until replacement members areelected under subsections (d) and (e).

(d) The first elected members of a governing body from atransferor corporation shall be elected at the first election after themembers are added under subsection (a):

(1) that occurs in the transferor corporation; and(2) where one (1) or more members of the governing body ofthe transferor corporation are elected.

The election shall be conducted in the manner required by law for theconduct of elections of governing bodies of school corporations.

(e) This subsection applies to an additional member of agoverning body appointed under subsection (c) to whom subsection(d) does not apply. The first additional elected member of agoverning body must be elected at the first election after themembers are added under subsection (a) where one (1) or moremembers of the governing body of the transferee corporation areelected. The election must be conducted in the manner required bylaw for the conduct of elections of governing bodies of schoolcorporations.

(f) This section expires January 1, 2017.As added by P.L.1-2005, SEC.10. Amended by P.L.233-2015,SEC.142.

IC 20-26-11-22Court ordered transfers; determination of transfer tuition

Sec. 22. (a) The transferee corporation is entitled to receive fromthe transferor corporation transfer tuition for each transferred studentfor each school year calculated in two (2) parts as follows:

(1) Operating cost.(2) Capital cost.

These costs must be allocated on a per student basis separately foreach class of school.

(b) The operating cost for each class of school must be based onthe total expenditures of the transferee corporation for the class fromits general fund expenditures as set out on the classified budgetforms prescribed by the state board of accounts, excluding from thecalculation capital outlay, debt service, costs of transportation,salaries of board members, contracted service for legal expenses, andany expenditure that is made out of the general fund fromextracurricular account receipts, for the school year.

(c) The capital cost for each class of school must consist of thelesser of the following alternatives:

(1) The capital cost must be based on an amount equal to fivepercent (5%) of the cost of transferee corporation's physicalplant, equipment, and all items connected to the physical plantor equipment, including:

(A) buildings, additions, and remodeling to the buildings,

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excluding ordinary maintenance; and(B) on-site and off-site improvements such as walks, sewers,waterlines, drives, and playgrounds;

that have been paid or are obligated to be paid in the future outof the general fund, capital projects fund, or debt service fund,including principal and interest, lease rental payments, andfunds that were legal predecessors to these funds. If an item ofthe physical plant, equipment, appurtenances, or part of the itemis more than twenty (20) years old at the beginning of theschool year, the capital cost of the item shall be disregarded inmaking the capital cost computation.(2) The capital cost must be based on the amount budgeted fromthe general fund for capital outlay for physical plant,equipment, and appurtenances and the amounts levied for thedebt service fund and the capital projects fund for the calendaryear in which the school year ends.

(d) If an item of expense or cost cannot be allocated to a class ofschool, the item shall be prorated to all classes of schools on thebasis of the ADM of each class in the transferee corporation, asdetermined in the fall count of ADM in the school year, compared tothe total current ADM therein, as determined in the fall count ofADM in the school year.

(e) The transfer tuition for each student transferred for eachschool year shall be calculated by dividing the transferee schoolcorporation's total operating costs and the total capital costs for theclass of school in which the student is enrolled by the ADM ofstudents therein, as determined in the fall count of ADM in theschool year. If a transferred student is enrolled in a transfereecorporation for less than the full school year, the transfer tuition shallbe calculated by the proportion of such school year for which thetransferred student is enrolled. A school year for this purposeconsists of the number of days school is in session for studentattendance. A student shall be enrolled in a transferee school,whether or not the student is in attendance, unless the:

(1) student's residence is outside the area of students transferredto the transferee corporation;(2) student has been excluded or expelled from school; or(3) student has been confirmed as a school dropout.

The transferor and transferee corporations may enter into writtenagreements concerning the amount of transfer tuition. If anagreement cannot be reached, the amount shall be determined by thestate superintendent, with costs to be established, where in dispute,by the state board of accounts.

(f) The transferor corporation shall pay the transferee corporation,when billed, the amount of curricular material rental due fromtransferred students who are unable to pay the curricular materialrental amount. The transferor corporation is entitled to collect theamount of the curricular material rental from the appropriate

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township trustee, from its own funds, or from any other source, in theamounts and manner provided by law.

(g) This section expires January 1, 2017.As added by P.L.1-2005, SEC.10. Amended by P.L.205-2013,SEC.243; P.L.286-2013, SEC.59; P.L.2-2014, SEC.84;P.L.233-2015, SEC.143.

IC 20-26-11-23Court ordered transfers; emergency funds for transfer

Sec. 23. (a) If a transfer is ordered to commence in a school year,where the transferor corporation has net additional costs over savings(on account of any transfer ordered) allocable to the state fiscal yearin which the school year begins, and where the transferee corporationdoes not have budgeted funds for the net additional costs, the netadditional costs may be recovered by one (1) or more of thefollowing methods in addition to any other methods provided byapplicable law:

(1) An emergency loan made under IC 20-48-1-7 to be paid, outof the debt service levy and fund, or a loan from any state fundmade available for the net additional costs.(2) An advance in the state fiscal year of state funds, whichwould otherwise become payable to the transferee corporationafter such state fiscal year under law.(3) A grant or grants in the calendar year from any funds of thestate made available for the net additional costs.

(b) The net additional costs must be certified by the departmentof local government finance. Repayment of any advance or loan fromthe state shall be made from state tuition support distributions orother money available to the school corporation.

(c) This section expires January 1, 2017.As added by P.L.1-2005, SEC.10. Amended by P.L.2-2006, SEC.132;P.L.146-2008, SEC.473; P.L.182-2009(ss), SEC.317; P.L.205-2013,SEC.244; P.L.233-2015, SEC.144.

IC 20-26-11-24Court ordered transfers; time of payment of transfer tuition

Sec. 24. (a) Transfer tuition for each school year shall be paid bythe transferor corporation during the term of the year and followingthe end of term in four (4) installments within ten (10) days after thefirst day of November, February, May and August, respectively. Thefirst three (3) payments shall be calculated on the basis of estimatesbased on the previous year's cost per student and the enrollment forthe day schools are open in the transferee corporation next precedingthe applicable payment date.

(b) This section expires January 1, 2017.As added by P.L.1-2005, SEC.10. Amended by P.L.233-2015,SEC.145.

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IC 20-26-11-25Court ordered transfers; payment and receipt of funds

Sec. 25. (a) Payment of the operating cost must be paid from andreceipted to the respective general funds of the transferor andtransferee corporations.

(b) Payment of capital costs must be made by the transferorcorporation, at its discretion, from any fund or source and bereceipted by the transferee corporation, at its discretion, either to thecapital projects fund or to the debt service fund.

(c) This section expires January 1, 2017.As added by P.L.1-2005, SEC.10. Amended by P.L.2-2006, SEC.133;P.L.233-2015, SEC.146.

IC 20-26-11-26Court ordered transfers; transportation

Sec. 26. (a) The transferor corporation shall provide eachtransferred student transportation to and from the school in thetransferee corporation to which the student is assigned. However, thetransferor corporation may require the transferred student to walk areasonable distance from the student's home to school or to atransportation pickup point.

(b) This section expires January 1, 2017.As added by P.L.1-2005, SEC.10. Amended by P.L.233-2015,SEC.147.

IC 20-26-11-27Court ordered transfers; transportation contracts

Sec. 27. (a) Transportation must be provided by the transferorcorporation to each transferred student under IC 20-27. However, thetransferor corporation may contract with the transferee corporationto provide transportation to the transferred students at the expense ofthe transferor corporation, and that the transferor corporation, inaddition to the other means of financing the purchase oftransportation equipment, may make the purchases out of its capitalprojects fund.

(b) This section expires January 1, 2017.As added by P.L.1-2005, SEC.10. Amended by P.L.2-2006, SEC.134;P.L.233-2015, SEC.148.

IC 20-26-11-28Repealed

(As added by P.L.1-2005, SEC.10. Repealed by P.L.2-2006,SEC.199.)

IC 20-26-11-29Court ordered transfers; implementation

Sec. 29. (a) The provisions of sections 19 through 29 of thischapter concerning the calculation of transfer tuition, the credits for

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state distribution, state reimbursement of transportation costs, orother state reimbursement may be implemented by rules adopted bythe state board.

(b) The state board shall adopt rules for the enforcement of thepayment of transfer tuition. The payment enforcement may includethe withholding of state support from the transferor corporation forthe benefit of the transferee corporation.

(c) A transferor or the transferee corporation may dispute theamount of transfer tuition or state reimbursement by petitioning thestate superintendent. Any dispute in the amount of transfer tuition orstate reimbursement shall be determined by the state superintendent.

(d) This section expires January 1, 2017.As added by P.L.1-2005, SEC.10. Amended by P.L.233-2015,SEC.149.

IC 20-26-11-30School attendance in former school corporation

Sec. 30. (a) This section applies to a student who resided in aschool corporation where the student had legal settlement for at leasttwo (2) consecutive school years immediately before moving to anadjacent school corporation.

(b) A school corporation in which a student had legal settlementfor at least two (2) consecutive years as described in subsection (a):

(1) shall allow the student to attend an appropriate schoolwithin the school corporation in which the student formerlyresided;(2) may not request the payment of transfer tuition for thestudent from the school corporation in which the studentcurrently resides and has legal settlement or from the student'sparent; and(3) shall include the student in the school corporation's currentADM;

if the principal and superintendent in both school corporations jointlyagree to enroll the student in the school.

(c) If a student enrolls under this section in a school described insubsection (b)(1), the student's parent must provide for the student'stransportation to school.

(d) A student to whom this section applies may not enrollprimarily for athletic reasons in a school in a school corporation inwhich the student does not have legal settlement. However, adecision to allow a student to enroll in a school corporation in whichthe student does not have legal settlement is not considered adetermination that the student did not enroll primarily for athleticreasons.As added by P.L.133-2008, SEC.2. Amended by P.L.205-2013,SEC.245.

IC 20-26-11-31

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State tuition support for certain studentsSec. 31. (a) This section applies to a school corporation that

enrolls a student who has legal settlement in another schoolcorporation for the purpose of the student receiving services from anaccredited nonpublic alternative high school described inIC 20-19-2-10(f).

(b) A school corporation is entitled to receive state tuition supportfor a student described in subsection (a) in an amount equal to:

(1) the amount received by the school corporation in which thestudent is enrolled for ADM purposes; or(2) the amount received by the school corporation in which thestudent has legal settlement;

whichever is greater.As added by P.L.65-2012, SEC.3.

IC 20-26-11-32Capacity; deadline; publication; and grounds and prohibitedgrounds for denial of transfer request

Sec. 32. (a) This section does not apply to a school corporation ifthe governing body has adopted a policy of not accepting the transferof any student who does not have legal settlement within the schoolcorporation.

(b) The governing body of a school corporation shall annuallyestablish:

(1) except as provided in subsection (m), the number of transferstudents the school corporation has the capacity to accept ineach grade level; and(2) the date by which requests to transfer into the schoolcorporation must be received by the governing body.

(c) After establishing the date under subsection (b)(2), thegoverning body shall:

(1) publish the date on the school corporation's Internet website; and(2) report the date to the department.

(d) The department shall publish the dates received from schoolcorporations under subsection (c)(2) on the department's Internet website.

(e) A student to whom this section applies may not request totransfer under this section primarily for athletic reasons to a schoolcorporation in which the student does not have legal settlement.

(f) If the number of requests to transfer into a school corporationreceived by the date established for the school corporation undersubsection (b)(2) exceeds the capacity established for the schoolcorporation under subsection (b)(1), each timely request must begiven an equal chance to be accepted, with the exception that astudent described in subsection (h) shall be given priority. Thegoverning body must determine which students will be admitted astransfer students to each school building and each grade level within

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the school corporation by a random drawing in a public meeting.(g) Except as provided in subsections (i), (j), (k), and (m), the

governing body of a school corporation may not deny a request fora student to transfer into the school corporation based upon thestudent's academic record, scores on ISTEP tests, disciplinary record,or disability, or upon any other factor not related to the schoolcorporation's capacity.

(h) Except as provided in subsections (i), (j), and (k), thegoverning body of a school corporation may not deny a request fora student to transfer into the school corporation if the studentrequesting to transfer:

(1) is a member of a household in which any other member ofthe household is a student in the transferee school; or(2) has a parent who is an employee of the school corporation.

(i) A governing body of a school corporation may limit thenumber of new transfers to a school building or grade level in theschool corporation:

(1) to ensure that a student who attends a school within theschool corporation as a transfer student during a school yearmay continue to attend the school in subsequent school years;and(2) to allow a student described in subsection (h) to attend aschool within the school corporation.

(j) Notwithstanding subsections (g) and (h), a governing body ofa school corporation may deny a request for a student to transfer tothe school corporation, or establish terms or conditions forenrollment that prevent a student from enrolling in a school, if thestudent has been suspended (as defined in IC 20-33-8-7) or expelled(as defined in IC 20-33-8-3) during the twelve (12) months precedingthe student's request to transfer under this section:

(1) for ten (10) or more school days;(2) for a violation under IC 20-33-8-16;(3) for causing physical injury to a student, a school employee,or a visitor to the school; or(4) for a violation of a school corporation's drug or alcoholrules.

For purposes of subdivision (1), student discipline received underIC 20-33-8-25(b)(7) for a violation described in subdivisions (2)through (4) shall be included in the calculation of the number ofschool days that a student has been suspended.

(k) The governing body of a school corporation with a schoolbuilding that offers a special curriculum may require a student whotransfers to the school building to meet the same eligibility criteriarequired of all students who attend the school building that offers thespecial curriculum.

(l) The parent of a student for whom a request to transfer is madeis responsible for providing the school corporation to which therequest is made with records or information necessary for the school

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corporation to determine whether the request to transfer may bedenied under subsection (j).

(m) Notwithstanding this section, the governing body of a schoolcorporation may authorize the school corporation to enter into anagreement with an accredited nonpublic school or charter school toallow students of the accredited nonpublic school or charter schoolto transfer to a school within the school corporation.

(n) A school corporation that has adopted a policy to not acceptstudent transfers after June 30, 2013, is not prohibited from enrollinga:

(1) transfer student who attended a school within the schoolcorporation during the 2012-2013 school year; or(2) member of a household in which any other member of thehousehold was a transfer student who attended a school withinthe school corporation during the 2012-2013 school year.

However, if a school corporation enrolls a student described insubdivision (1) or (2), the school corporation shall also allow astudent or member of the same household of a student who attendedan accredited nonpublic school within the attendance area of theschool corporation during the 2012-2013 school year to enroll in aschool within the school corporation.As added by P.L.282-2013, SEC.2. Amended by P.L.39-2014, SEC.1.

IC 20-26-11-33Acceptance of nonresident students into alternative educationprograms

Sec. 33. (a) Notwithstanding a policy adopted under section 32(a)of this chapter, a school corporation may accept a student who doesnot have legal settlement in the school corporation into an alternativeeducation program (as defined in IC 20-30-8-1).

(b) A school corporation that accepts students under subsection(a) is not subject to the requirements set forth in section 32 of thischapter other than those requirements set forth in section 32(g),32(h), 32(j), 32(k), and 32(l) of this chapter.As added by P.L.127-2016, SEC.17.

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